Invesco WS Aus Smaller Companies-Class A (CNA0812AU) Report & Performance

What is the Invesco WS Aus Smaller Companies-Class A fund?

Invesco Wholesale Australian Smaller Companies – Class A aims to provide long-term capital growth and distributions.  The Fund invests primarily in shares of companies listed on the Australian Stock Exchange that fall outside of the S&P/ASX 100 list of companies.

  • The Fund actively takes a position in Australian Smaller Companies shares with the aim of delivering consistent returns above its benchmark.
  • It aims to add value through the systematic application of key financial indicators and behavioural concepts developed by the Invesco Quantitative Strategies team.
  • The underlying portfolio generally holds between 60 and 120 stocks that generally have a market capitalization in excess of $40 million.
  • The underlying investments are managed by our Frankfurt and Melbourne offices, with supervision and monitoring undertaken by our Melbourne office.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Invesco WS Aus Smaller Companies-Class A

Invesco WS Aus Smaller Companies-Class A Fund Commentary September 30, 2023

During the month of September, equity markets in Australia posted negative returns with the ASX Small Ordinaries Index declining as the higher for longer sentiment gained momentum. Despite this, the energy sector demonstrated resilience, while real estate and information technology stocks performed poorly. Towards the end of the month, fresh highs for the US 10-year yield and rising oil prices weighed on smaller companies share prices. The CPI figure announced in August rose to 5.2% in line with expectations, while core inflation fell to 5.5%. At the same time, retail sales increased slightly during the month of August and the unemployment rate remained steady.

In September, Momentum detracted slightly, while Quality and Value had a positive impact on performance over the month. Stock specific effects, which are not attributable to any proprietary factor, had a slight impact as well.

Impact from active sector weights, which are a by-product of the multi-factor optimisation process, was positive over the month. Here, our overweight in the Consumer Discretionary Sector had a negative impact, while an underweight in both the Financials and the Health Care Sectors contributed positively to active returns.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Invesco WS Aus Smaller Companies-Class ACNA0812AUManaged FundsDomestic EquityAustralian Small CapDomestic Equity - Small Cap IndexASX Index Small Ordinaries Index17.63 M0.55%0.00%0.1%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Invesco WS Aus Smaller Companies-Class A6.07%10.41%26.01%4.8%8.98%14.15%18.89%16.25%-6.59%-22.84%-56.23%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Invesco WS Aus Smaller Companies-Class ADomestic Equity - Small Cap Index5.1%-1.44%NA%NA%NA%1.194.56%4.98%0.960.95

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Invesco WS Aus Smaller Companies-Class AYes-https://www.invesco.com.au/home-

Product Due Diligence

What is Invesco WS Aus Smaller Companies-Class A

Invesco WS Aus Smaller Companies-Class A is an Managed Funds investment product that is benchmarked against ASX Index Small Ordinaries Index and sits inside the Domestic Equity - Small Cap Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Invesco WS Aus Smaller Companies-Class A has Assets Under Management of 17.63 M with a management fee of 0.55%, a performance fee of 0.00% and a buy/sell spread fee of 0.1%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Invesco WS Aus Smaller Companies-Class A has returned 6.07% in the last month. The previous three years have returned 4.8% annualised and 16.25% each year since inception, which is when the Invesco WS Aus Smaller Companies-Class A first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Invesco WS Aus Smaller Companies-Class A first started, the Sharpe ratio is NA with an annualised volatility of 16.25%. The maximum drawdown of the investment product in the last 12 months is -6.59% and -56.23% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Invesco WS Aus Smaller Companies-Class A has a 12-month excess return when compared to the Domestic Equity - Small Cap Index of 5.1% and -1.44% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Invesco WS Aus Smaller Companies-Class A has produced Alpha over the Domestic Equity - Small Cap Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Small Cap Index category, you can click here for the Peer Investment Report.

What level of diversification will Invesco WS Aus Smaller Companies-Class A provide?

Invesco WS Aus Smaller Companies-Class A has a correlation coefficient of 0.95 and a beta of 1.19 when compared to the Domestic Equity - Small Cap Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Invesco WS Aus Smaller Companies-Class A and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Invesco WS Aus Smaller Companies-Class A with the ASX Index Small Ordinaries Index?

For a full quantitative report on Invesco WS Aus Smaller Companies-Class A compared to the ASX Index Small Ordinaries Index, you can click here.

Can I sort and compare the Invesco WS Aus Smaller Companies-Class A to do my own analysis?

To sort and compare the Invesco WS Aus Smaller Companies-Class A financial metrics, please refer to the table above.

Has the Invesco WS Aus Smaller Companies-Class A been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Invesco WS Aus Smaller Companies-Class A?

If you or your self managed super fund would like to invest in the Invesco WS Aus Smaller Companies-Class A please contact via phone or via email .

How do I get in contact with the Invesco WS Aus Smaller Companies-Class A?

If you would like to get in contact with the Invesco WS Aus Smaller Companies-Class A manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Invesco WS Aus Smaller Companies-Class A. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - August 31, 2023

During the month of August, equity markets in Australia posted negative returns with the ASX Small Ordinaries declining due to weak sector performances from health care, real estate and financials. The Reserve Bank of Australia opted to hold interest rates at 4.1% citing the fact that past increases had shown signs of cooling demand. It is now forecasting inflation falling back to target in late 2025. In addition, Australia’s unemployment rate rose by 20bps from 3.5% to 3.7%, while the Q2 year-on-year wage growth slowed to 3.6%, below estimates of 3.7%.

In August, Value stayed flat, while Momentum and Quality had a positive impact on performance over the month. Stock specific effects, which are not attributable to any proprietary factor, had a positive impact as well.

Impact from active sector weights, which are a by-product of the multi-factor optimisation process, was slightly positive over the month. Here, our overweight in the Consumer Discretionary Sector had a positive impact, while an underweight on both the Financials and the Health Care Sectors contributed positively to active returns.

Performance Commentary - July 31, 2023

Over July, the Australian multi-factor model posted moderately positive results, with Quality and Value ending the month in positive territory. Momentum had a weak start to the month but was able to manage a flat performance to end the month. Among the factors, Value was the strongest in the model, while Quality was close behind.

Within our Australian universe, the highest rated stocks identified by our multi-factor model were flat, while the least attractively rated stocks outperformed.

Performance Commentary - June 30, 2023

Over June, the Australian multi-factor model moved back into positive territory, with Quality and Value posting
strong results. Momentum had a good start to the month but declined in the last few trading days to end the
month flat. Value was the strongest factor in the model with all underlying signals contributing positively.

Within our Australian universe, the highest rated stocks identified by our multi-factor model performed in line
with the broader market, while the least attractively rated stocks underperformed.

Performance Commentary - May 31, 2023

The Australian equity market had a negative month in May. This was mainly due to a surprise 25bps interest rate hike by the Reserve Bank of Australia (RBA) in response to the stronger than expected inflation data. Technology was the best performing sector, up 10.4%, as investors rotated into companies that may have a better chance of delivering growth in the face of a macro slowdown. Discretionary was the worst sector, down 6.2% on signs of a weaker consumer. Smaller capitalisation companies underperformed the broader market.

In May, Momentum and Quality had a negative impact on performance, whereas Value contribution was flat over the month. Stock specific effects, which are not attributable to any other factor, had a negative impact as well. Impact from active sector weights, which are a by-product of the multi-factor optimisation process, was negative over the month. Here, our marginal underweight in the Financials sector and the Information Technology sector both had a negative impact on active returns.

Performance Commentary - April 30, 2023

The Australian equity market had a positive month in April, supported by the upgraded growth outlook in Europe. Nearly every sector in the ASX 200 was in the green for the month, with technology and industrials leading the gains, and materials being the only sector in the red.

The March quarter inflation figures for Australia showed a headline rate of 7.0% and a core rate of 6.6%, with services inflation still being strong. March’s labour market data was better than expected, however there are indications that future job gains may be harder to achieve. With the mixed economic sentiments, the Reserve Bank of Australia (RBA) paused on rate hikes in April, but it is uncertain whether the hiking cycle is over. In April, Momentum had no contribution to performance, whereas Quality had a positive contribution and Value added negatively to active returns over the month.

Stock specific effects, which are not attributable to any other factor, had a positive impact on active returns. Impact from active sector weights, which are a by-product of the multi-factor optimisation process, was negative over the month. Here, our marginal underweight in the Communications sector and overweight in the Materials sector both had a negative impact on active returns.

Performance Commentary - March 31, 2023

Market review Australian equities eked out a small positive return in March, led by Gold stocks. The RBA raised its overnight cash rate target by 25 basis points to 3.6%, the tenth consecutive meeting with a rate rise announcement. Some bank failures in the US forced the Federal Reserve to introduce additional liquidity measures to support confidence and minimise the risk of contagion. Real Estate was the worst-performing sector as US banking issues and tight credit amplified existing concerns regarding Commercial Real Estate (CRE). Value outperformed Growth, largely due to strong returns for Resources, while Quality outperformed both as investors sought out lower risk equities in response to US banking concerns.

In March, Momentum and Value had no significant impact on performance, whereas Quality had a positive contribution to active returns over the month. Stock specific effects, which are not attributable to any other factor, had a negative impact on active returns.

Impact from active sector weights, which are a by-product of the multi-factor optimisation process, was positive over the month. Here, our underweight in the Financials sector had a positive impact on returns.

Over March, the Australian multi-factor model posted positive results with all factors contributing. Momentum performed the best with Price Momentum leading over Earnings Momentum, followed by Quality and then Value.

Within our Australian universe, the highest rated stocks identified by our multi-factor model outperformed the broader market, while the least attractively rated stocks underperformed.

Performance Commentary - February 28, 2023

Australia’s equity market declined during the month of February. Comments by US Federal Reserve officials, pointing towards a more prolonged restrictive monetary policy, led stocks to fall. Investors’ concerns over falling spot prices caused prices of Material stocks to fall significantly, putting further downward pressure on the index. February coincides with interim and final reporting season for the majority of Australian companies and this led to significant dispersion in returns. Contribution from our multi-factor model was negative in February, despite moderately positive predictive power of the model.

Momentum and Quality both contributed negatively to performance, whereas Value had a positive contribution to active returns over the month. The Stock specific effects, which are not attributable to any other factor, had a positive impact on active returns. Impact from active sector weights, which are a by-product of the multi-factor optimisation process, was neutral over the month. Here, our overweight in the Information Technology sector had a positive impact on returns. An overweight in the Consumer Discretionary sector and an underweight in the Financials sector negatively affected performance.

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